Media Release
10 November 2015
Australia faces debilitating congestion impacting the liveability of our cities without major reform of our transport funding model, Transurban CEO Scott Charlton said in response to congestion trends released by the Bureau of Infrastructure, Transport and Regional Economics (BITRE) yesterday.
'BITRE estimates the avoidable social cost of congestion in our capital cities is $16.5 billion - an increase of 30 per cent since 2010 - and this cost is expected to double by 2030,' Mr Charlton said.
'Transurban's in-house traffic modelling shows that if we continue down the same path, by 2035 Sydney motorists will spend 110 hours a year in traffic on average, while on some of the very worst routes motorists could be spending up to two hours for what is a 40-minute trip outside of peak hours.'
Mr Charlton said that reforming the road funding model to a user-pays system provided a sustainable solution to congestion and presented tangible benefits for governments, taxpayers and road users.
'A transport funding model that is built on a principle of those who benefit pay would allow us to plan ahead and encourage more efficient use of infrastructure while lessening the long-term investment burden,' he said.
'Developed to its full potential, a road-user charging system could also target congestion on roads or include coordinated pricing with other modes of transport, such as public transport.'
Various user-pays systems are being implemented or trialled across the world. Transurban has commenced this process in Australia with a Road Usage Study being conducted in Melbourne over the next year. Through the study, Transurban will provide tangible data that will help progress options for a sustainable funding model.
The study will be conducted across the whole Melbourne road network, involve 1,200 volunteer participants and trial various user-pays models including:
distance-based per-kilometre charge
one-off charge based on anticipated kilometres
price-per-trip or access charge.
The exercise will also explore other models being employed throughout the world including time-of-day pricing on the network and a cordon charge for driving in the CBD.
A pilot program was started in August with 70 participants as a precursor to the full study, which started at the beginning of November. The study will compare alternative user-pays models that could be considered in place of the current fuel excise and registration model, and gauge drivers' preferences for these different schemes.
'We believe by undertaking exercises such as this, the private sector can play a meaningful and proactive role outside of political timeframes and perceived agenda,' he said.
ENDS
Alida Merson Communications Specialist 0417 195 389
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